UPDATE 1-Peru central bank raises interest rate to 3.75 percent

LIMA Dec 10 (Reuters) - Peru's central bank raised the
benchmark interest rate to 3.75 percent as widely expected on
Thursday, its second hike in four months as it tries to tame
inflation stoked by the sol currency's depreciation.

Fifteen out of 17 economists surveyed by Reuters had
forecast the 25 basis point increase after inflation spiked to
4.17 percent in November.

The central bank reiterated that it would closely monitor
inflation and consider additional increases to the key rate to
bring inflation back into its 1 to 3 percent target range.

"Inflation expectations are above the target range," the
central bank said in a statement. Last month it said they were
gradually converging to its target range.

The central bank raised the key rate for the first time in
four years in September, amid expectations of rising interest
rates in the United States that have dampened demand for the sol
and other emerging market currencies.

The sol has weakened by about 13 percent against the dollar
so far this year, despite the central bank's interventions in
the spot market to counter its losses.
(Reporting by Lima Newsroom; Editing by Andrew Hay)